13 Ways to Prepare for a Layoff

Layoffs are hard, but not all layoffs are totally unexpected. Often you can see a layoff coming if you keep your eyes and ears open. Some warning signs: The company seems to be struggling and bills aren’t getting paid or customers aren’t getting their orders. Management shake ups are happening regularly as the company tries to find their miracle worker. Other departments are laying people off. Pay and benefits are getting cut in an effort to keep the company afloat. The suits are congregating in greater numbers or the suits from corporate are spending more time at your office. Rumors are flying (not all office gossip is made up; some of it is rooted in fact). And sometimes you j

2 Responses to 13 Ways to Prepare for a Layoff

Most of these are no-brainers, although I don’t get the point about stocking the pantry. It’s not like you can somehow not buy food once you lose your job.

You left out a few important ones….make sure to use up any personal days now because they won’t be reimbursed by your employer the way unused vacation days may be.

Also, apply for a HELOC loan/line of credit which you can draw from in the event of financial emergencies while you’re out of work. Once you’re unemployed, you won’t qualify for this kind of loan so the time to apply is now.

I also can’t emphasize enough that you should pay down/pay off any high interest credit card debt. It’s never a good idea to carry such debt month to month, but after a layoff, it can quickly become unmanageable.

Also, if you’ve taken out a loan from your 401k, make sure it’s paid back; otherwise, the IRS will consider it a taxable distribution and you’ll be with a penalty.

Any mortgage prepayments you may have been making should also stop. The idea is to preserve as much cash now as possible.